India GDP Forecast: Global ratings S&P has projected the country’s GDP growth to increase to 6.5 percent during the financial year 2025-26. After this prediction, GDP growth has improved compared to last month.
India GDP Growth: This news is a relief on the Indian economy front. Global ratings S&P has estimated the country’s GDP growth to be 6.5 percent during the financial year 2025-26. After this prediction, GDP growth has improved compared to last month. Earlier, the growth rate was reduced to 6.3 percent due to global uncertainties.
In the new Asia Pacific Economic Outlook report, global agency S&P said that due to strong domestic demand in the country, the economy stands strong despite global challenges. The main factors supporting GDP include fall in crude oil prices, expectation of normal monsoon, possibility of reduction in interest rates and concessions in income tax.
GDP will grow at a fast pace
In line with the RBI’s estimate, S&P has also expressed the possibility of a similar economy. For the financial year 2025-26, the Reserve Bank of India had expected the GDP growth rate to remain at 6.5 percent.
Meanwhile, S&P’s report on US tariffs also expressed concern and said that it could hurt investment and global trade. Along with this, the pace of the global economy could also slow down. This report also mentions the tension in the Middle East and says that the US military action could worsen the situation. Along with this, if the price of crude oil remains high for a long time, then it can also have a bad effect on other economies like India which are dependent on energy imports.
Rise in crude oil affects GDP
It is worth noting that India is dependent on imports for about ninety percent of its needs. Along with this, about fifty percent of natural gas is also imported from abroad. In such a situation, if the price of crude oil goes up, then not only will the trade deficit of an economy like India increase, but inflation will also increase. Its adverse effect can be seen on GDP.